Multiple Choice Questions
1. Which of the following statements regarding the traditional manufacturing environment is not true?
a. Factories were organized so that similar machines were grouped together.
b. Finished goods inventories were accumulated in case of unanticipated demand.
c. Raw materials were purchased “just in time” to meet customer demand.
d. Products were “pushed” through the production process to maximize output.

2. Traditional manufacturing facilities typically have machines organized in which of the following ways?
a. Similar machines are grouped together.
b. Similar and dissimilar machines are grouped together.
c. Machines are grouped in work cells that produce a limited number of products.
d. Machines are grouped linearly.

3. Just-in-time environments can most accurately be described by which of the following terms?
a. Iterative production
b. Push production
c. Pull production
d. Supply production

4. Lean production is focused on eliminating waste associated with which of the following?
a. Holding more inventory than required
b. Making more product than is needed
c. Overprocessing a product (doing more than a customer values)
d. Moving products (and people) further than required
e. Downtime caused by people waiting for work to do and products waiting in mid-assembly
f. All of the above

5. Which of the following is least likely to be associated with lean production and JIT manufacturing?
a. A reduction in waste and scrap
b. Improvement in product quality
c. Reduced processing time and lower production costs
d. Higher labor costs
e. Inventory reduction

6. Which of the following statements concerning manufacturing cells is false?
a. Manufacturing cells can reduce machine setup times.
b. Manufacturing cells typically have highly trained employees who are allowed to specialize in one process.
c. Manufacturing cells reduce the time required to move materials and products.
d. Manufacturing cells accomplish each of the above objectives.

7. Jill Garrett owns a company that manufactures women’s clothing. In the most recent year, wage and salary expenses included the following:
Machine operators ............. $200,000
Quality control supervisors ......... 100,000
Fabric cutters ............... 75,000
Factory janitor ............... 18,000
Company president ............ 150,000
What amount of indirect labor costs was incurred during the year?
a. $75,000
b. $118,000
c. $250,000
d. $543,000

8. Which of the following costs is least likely to be a manufacturing cost?
a. Depreciation of production machinery
b. Production supervisor’s salary
c. Depreciation of sales office computer equipment
d. Purchase price of wood used to produce tables